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Old 06-20-2011, 04:45 PM   #1
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Covering Kentucky politics and government,lunettes oakley gascan
State receipts up 17 percent in May, state on track for surplus
By Beth Musgrave
bmusgrave@herald-leader.com
FRANKFORT — State government appears to be on track for a surplus after posting big gains in May tax receipts compared to 2010.
Total receipts — tax collections and fees — were up 17.8 percent in May compared to May of the previous year, according to state officials. May’s strong showing coupled with equally strong revenue collections in the previous months means the state is on track for a surplus this fiscal year, which ends June 30.
Given the state’s economic rebound, Gov. Steve Beshear said in a statement Friday that he will not ask state employees to take any furlough days next fiscal year, which begins July 1. State employees were required to take six furlough days this year, the last of which occurred May 27.
According to numbers released Friday,Ray Ban Jackie Ohh, revenues for May were $750.3 million, compared to $636.7 million in
May 2010. That’s one of the largest year-to-year increases in receipts in the past three years.
Earlier this year, the Office of State Budget Director had projected a $64 million surplus because the economy was rebounding faster than state economic forecasters had predicted . It’s not clear if the surplus will be $64 million. It will depend on June tax receipts,ray ban collection 2009, said Mary Lassiter, state budget director and secretary of Beshear’s cabinet.
Beshear said he believed that the state’s economy was continuing to rebound and that furlough days of state employees — which saved about $24 million in 2011– would not be necessary for the coming fiscal year. Senate President David Williams, R-Burkesville, Beshear’s opponent in November, has been critical of the furloughs. Williams has said Beshear should have cut more from state government before asking state employees to go without pay.
“We will continue to evaluate whether any furloughs will be necessary to balance the $169 million budgeted gap (in next year’s budget)when we have updated revenue projections; however, if things continue as they are going now, they will be unnecessary,” Beshear said.
As part of the 2010 two-year budget plan, Beshear must come up with $169 million in cuts. He has not yet said how those cuts will be achieved.
“Nearly every state employee took these days regardless of position, including me,” Beshear said. “This sacrifice saved over 400 state jobs and helped us balance our budget despite incredibly difficult financial times, and it will not soon be forgotten.”
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